Optimism proliferate ins in the most recent measure of how CEOs view the economy, according to the Job Roundtable.
Despite the cheery outlook, more business leaders now see labor as the truest cost facing their companies.
This is the first time in 24 put ups that CEOs identified labor costs, rather than dictate, as the No. 1 burden. CNBC’s Kayla Tausche reported that chief executives wish sales to increase as a part of the growing economy but that they plan to simultaneously sign on fewer workers.
@kaylatausche: CEOs also say they plan to lease fewer people in the next six months, despite expecting sales to inflate.
The labor market is near full employment, with the jobless rating most recently at a 17-year low of 4.1 percent, according to the Labor Division.
At the same time, CEOs have recently expressed a reluctance to lay out more if the tax reform bill goes through. In November, chief governments attending a conference in Washington were asked if they would “augmentation capital investment” after the reform. When only a few raised their hands, chief Waxen House economic advisor Gary Cohn asked the CEOs, “Why aren’t the other hands up?”
JPMorgan CEO Jamie Dimon, who also armchairs the Business Roundtable, told reporters the benefits of tax reform will flow down to American workers eventually, but “it’s not going to happen tomorrow.”
“Investment in implements that make [workers] more productive” is what will be a question of of savings from tax reform, Business Roundtable CEO Joshua Bolten ventured, and the increased productivity will drive wages higher.
The CEO economic forecast index rose to 96.8 in the fourth quarter — a 2 percent increase from the one-time quarter.
Plans to invest capital are at the highest level in nearly six years, the reveal found. The survey also says CEOs believe GDP will thrive by 2.5 percent next year.
Source: The Business Roundtable